BEML society violated norms, says dept inquiry

It was accused of irregularities in allotment of sites

The Cooperation department has upheld most of the allegations against the BEML Employees’ Cooperative Society which was, a couple of months ago, accused of violating several norms while allotting sites.

The Cooperation department, after an inquiry into the allegations, has upheld the charge that former BEML chairman and managing director V R S Natarajan’s site was allotted out of turn.

In its report finalised in April this year, the department has found violations of section 79 (A), (B) of the Karnataka Land Reforms Act, 1961.

According to the said section of the Act, cooperative societies are barred from purchasing agricultural land. However,  just like several other societies operating in Bangalore, the BEML society has also violated these rules, the report observed.

Among other rules, the report, a copy of which is with Deccan Herald says, the Society has also violated the model bye-laws for housing societies that prevent them from employing middlemen to conduct their business.

Not only does the Section 54 of the Model Bye-laws bar this, but the Supreme Court has also, while hearing Sant Lal Gupta & Others versus Modern Co-operative GH Society, on 18 October, 2010, held that what is barred “directly” under the law cannot be legally effected by an indirect and circuitous contrivance.

In this context, use of middlemen to purchase agricultural land which is otherwise barred for purchase by housing societies becomes illegal.

Sites to outsiders

Sources in the department said that the number of sites given to outsiders or out-of-turn allotments increased post-2002, and many sites, including those alleged to have given to people connected to T K A Nair, advisor to the Prime Minister, were not in compliance with the existing rules.

Among others who had allegedly received sites in violation of rules are Prithvi Majumdar, one of the directors (site no. 801), Amal Chand Biswas (site no. 800), who was on deputation at BEML.

The report, which has found all these violations, has observed that the same could be cancelled and has asked the Society to file a compliance report.

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